PJSC Ukrnafta has increased its reserves by 330 thousand tons of oil and 618 million cubic meters of gas by expanding the boundaries of two existing special permits, the company’s press service reports.
According to the company, the reason for expanding the boundaries of the special permits is to bring their size to the contours of the field’s productive deposits.
The subsoil area of the first special permit now amounts to 18.33 square kilometers, which is 23.1% more than the previously granted area. Total reserves increased by 217 thousand tons of oil and condensate and 232 million cubic meters of gas.
The area of the second license increased by 16.3% to 41.75 square kilometers. Total reserves increased by 113 thousand tons of condensate and 386 million cubic meters of gas.
“By 2023, the company has expanded the boundaries of special permits only twice. I thank the company’s employees who prepared and submitted the necessary applications and packages of documents to the State Service of Geology and Subsoil of Ukraine, after which the relevant orders were received, thus increasing the opportunities for resource extraction,” said Sergiy Koretsky, CEO of Ukrnafta.
As reported, in 2023, Ukrnafta increased oil and condensate production by 3% (by 39.9 thousand tons) compared to 2022 – up to 1 million 409.9 thousand tons, gas production by 5.8% (by 60.4 million cubic meters), up to 1 billion 97.4 million cubic meters.
“Ukrnafta’s strategic goal is to double its oil and natural gas production to 3 million tons and 2 billion cubic meters by 2027, respectively.
“Ukrnafta is Ukraine’s largest oil producer and operator of a national network of 537 filling stations, of which 456 are in operation.
Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. On November 5, 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer the corporate rights of the company owned by private owners, which is now managed by the Ministry of Defense, to the state.
Oil prices were stable on Friday, but ended the week in the black amid geopolitical tensions and declining US oil inventories.
The cost of March futures for Brent crude oil on the London ICE Futures exchange as of 7:20 a.m. is $78.98 per barrel, which is $0.12 (0.15%) lower than at the close of the previous trading. On Thursday, these contracts rose by $1.22 (1.6%) to $79.1 per barrel.
February futures for WTI in electronic trading on the New York Mercantile Exchange (NYMEX) have risen in price by this time by $0.08 (0.11%) to $74.16 per barrel. As a result of the previous trading, the value of these contracts increased by $1.52 (2.1%) to $74.08 per barrel.
Since the beginning of this week, Brent has risen in price by 0.9%, WTI – by 2%.
Commercial oil inventories in the United States last week decreased by 2.492 million barrels, to the lowest level since October, the country’s Energy Ministry said on Thursday. Stocks at the Cushing terminal, where oil traded on the Nymex is stored, decreased by 2.1 million barrels over the week, the most since September last year.
US oil production increased by 100 thousand barrels to 13.3 million barrels per day (bpd).
Gasoline reserves in the United States increased by 3.08 million barrels last week, and distillate reserves by 2.37 million barrels.
The International Energy Agency (IEA), which published its monthly oil market review the day before, expects oil demand growth in 2023 to decline to 1.2 million bpd from 2.3 million bpd in 2023.
The IEA’s forecast “is consistent with OPEC’s expectations of a steady increase in demand,” said Matthew Weller, an analyst at FOREX.com and City Index, as quoted by Market Watch.
However, “OPEC’s demand forecast for this year is significantly stronger,” the expert says.
Oil prices are falling on Wednesday amid a general decline in risk appetite and a stronger US dollar, despite the ongoing tensions in the Red Sea region.
The cost of March futures for Brent on the London ICE Futures exchange as of 7:15 a.m. is $77.66 per barrel, which is $0.63 (0.8%) lower than at the close of the previous trading. On Tuesday, these contracts rose by $0.14 (0.2%) to $78.29 per barrel.
Futures for WTI for February in electronic trading on the New York Mercantile Exchange (NYMEX) have fallen by $0.65 (0.9%) to $71.75 per barrel by this time. As a result of previous trading, the value of these contracts fell by $0.28 (0.4%) to $72.4 per barrel.
Traders seem to be “more concerned about a lack of demand than a shortage of supply at the moment,” said Colin Sizinski, portfolio manager at SIA Wealth Management, as quoted by Market Watch.
The sharp decline in the Empire State Manufacturing index in January “signals a slowdown in US growth, and the Chinese economy is a major concern,” the expert said.
China’s GDP growth in the fourth quarter of 2023 accelerated to 5.2% year-on-year from 4.9% in October-December, but was worse than market expectations (+5.3%).
On Wednesday, the dollar index DXY is adding 0.1%, having risen by 0.6% the day before.
In 2023, PJSC Ukrnafta increased oil and condensate production by 3% (by 39.9 thousand tons) compared to 2022, to 1 million 409.9 thousand tons, the company’s press service said on Monday.
Last year’s production of natural and associated petroleum gas amounted to 1 billion 97.4 million cubic meters, which is 5.8% (60.4 million cubic meters) more than in 2022.
“I would like to thank the company’s team for not only holding the natural decline in a full-fledged war year, but also increasing production. In difficult conditions, you have made every effort to achieve results,” said Sergiy Koretsky, Ukrnafta’s CEO.
According to him, in 2024, Ukrnafta plans to drill new wells and intensify production, invite partners to the fields and replace old Soviet and Russian equipment with modern world-class models.
As reported, in 2022 the company produced 1.37 million tons of oil and condensate and 1.037 billion cubic meters of gas.
“Ukrnafta’s strategic goal is to double its oil and natural gas production to 3 million tons and 2 billion cubic meters by 2027, respectively.
“Ukrnafta is Ukraine’s largest oil producer and operator of a national network of 537 filling stations, of which 456 are in operation.
Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share. On November 5, 2022, the Supreme Commander-in-Chief of the Armed Forces of Ukraine decided to transfer the corporate rights of the company owned by private owners, which is now managed by the Ministry of Defense, to the state.
Oil prices are rising on Monday amid continued tensions in the Middle East.
The United States on Saturday launched a new strike on Yemen in response to the launch of a ballistic missile by the Yemeni Houthis at shipping lanes in the Red Sea. According to Western media, the strike hit a single target – a radar used by the Houthis.
On Friday, the United States and the United Kingdom launched a series of airstrikes on military facilities belonging to the Houthis in Yemen.
The cost of March futures for Brent crude oil on the London ICE Futures exchange as of 7:20 a.m. is $78.49 per barrel, which is $0.2 (0.26%) higher than at the close of the previous trading. On Friday, these contracts rose by $0.88 (1.1%) to $78.29 per barrel.
Futures for WTI for February in electronic trading on the New York Mercantile Exchange (NYMEX) have risen in price by this time by $0.12 (0.17%) to $72.8 per barrel. As a result of the previous trading, the value of these contracts increased by $0.66 (0.9%) to $72.68 per barrel.
On Friday, the rise in the price of Brent at one point exceeded 4%, but by the end of the session it was only 1.1%. Over the past week, Brent fell by 0.6%, while WTI fell by 1.5%.
Market fluctuations show that traders currently do not see any serious risks of a reduction in oil production in the Middle East and oil supplies from the region due to the current conflict, Bloomberg writes.
Currently, prices “do not include a geopolitical risk premium, so Brent could rise above $80 per barrel if the conflict in the Middle East continues to escalate,” said Rob Tammel, portfolio manager at Tortoise Capital Advisors, as quoted by Market Watch.
“Currently, events in the region do not affect the supply of oil on the world market,” said Warren Patterson, who is responsible for commodity strategy at ING Groep NV. – “In the absence of supply disruptions, the situation on the oil market remains comfortable, despite the Middle East tensions.
Oil prices are actively rising on Friday morning due to escalating tensions in the Middle East.
The price of March futures for Brent on the London ICE Futures exchange by 7:12 a.m. was $78.78 per barrel, which is $1.36 (1.76%) higher than at the close of the previous session. On Thursday, these contracts rose in price by $0.61 (0.8%) to $77.41 per barrel.
Quotations for February futures for WTI in electronic trading on the New York Mercantile Exchange (NYMEX) by this time increased by $1.34 (1.86%) to $73.36 per barrel. At the end of the previous session, they rose by $0.65 (0.9%) to $72.02 per barrel.
WTI crude has not fallen below the level of long-term support, which is around $70 per barrel, since the beginning of 2024, said Tyler Ritchie, editor of Sevens Report Research.
“The main reason is the geopolitical uncertainty surrounding the expanding conflict between Israel and Hamas, as well as related attacks by Iranian-backed Houthis on ships in the Red Sea,” he added.
Earlier this week, Yemeni Houthis reportedly launched a large-scale attack on ships with drones and missiles. The U.S. military repelled the attack, but shipping companies remain wary of sending their vessels through the Red Sea for security reasons.
In response, the U.S. and allied military launched a series of strikes against the Houthis in Yemen.
“Today, at my direction, the U.S. military, together with the United Kingdom and with the support of Australia, Bahrain, Canada, and the Netherlands, successfully struck a number of targets in Yemen that Houthi rebels are using to threaten freedom of navigation on one of the world’s most important waterways,” Biden said in a statement released by the White House.
He noted that the US strikes are “a direct response to unprecedented Houthi attacks on international shipping in the Red Sea.”
